Have you just recently retired from your job? Now that you have your nest egg figured out and in place and you’re enjoying not having to punch a time clock anymore, what are you going to do with your time? If you’ve come up with a hobby to occupy your time or a home business that you’d really like to see take off, you’ll need to get your hands on some cash first. While it isn’t wise to dip into your future retirement account, here are few other avenues you might want to consider.
Is your home paid off? Or are you close to paying off the remaining balance on your home loan? One option for accessing some cash is through a reverse mortgage. Basically, a loan company cashes you out of your home for the equity that resides in it. You’ll still be able to live in your home for the rest of your life, but you’ll get a nice cash out payment and not have to worry about paying it back. There are a few pitfalls though to keep in mind:
- *Part of the mortgage agreement will be that the home will be deeded over to the mortgage company, and your name will no longer be on it.
- *You won’t be able to leave the home to your heirs after you die.
- *You’ll be unable to use the home again as collateral for a future loan.
- *There are interest and fees that are deducted from the final amount of the cash out.
- *Staying in the home is likely your only option. Moving out may forfeit parts of the reverse mortgage agreement.
- *You will still be responsible for insurance and tax payments while you live in the home.
A reverse mortgage gives you a large lump sum of money that you can choose to do whatever you like with. If you’ve been wanting to start a new business, this gives you cash fairly fast. Don’t forget to talk to your lender. Have all of the reverse mortgage facts explained to you and get your questions answered before you sign on the dotted line.
Low Finance Rate Loan
If you rent a condo or you owe a considerable amount on your existing mortgage, you may not qualify for a reverse mortgage or quick cash sale. If that’s the case, you may wish to pursue a personal loan or, if you already own a home, a second mortgage with a low or reasonable interest rate. Some home equity loans offer a low APR to help curb costs for a certain period of time. After a specific time frame, rates may slowly increase. If you feel like your home business venture or new hobby may bring in a good return, you can take that risk that you’ll pay off the loan before the rate increases. Ask your existing mortgage lender or a reputable loan company about applying for a low-interest rate loan.
Selling a Vintage Auto
Does your hobby involve purchasing something new, such as aircraft or boats, and fixing it up? Maybe you have some old cars in the garage that you haven’t used in several years? If so, consider selling them at a professional auto auction or through a personal sale. Automotive values, especially for vintage cars and trucks is skyrocketing. If you have a classic car that is worth a considerable amount, now may be the time to list it for sale. While there may be sentimental value involved, keep in mind it will likely be going to a good home to be restored and admired by someone else. Vintage automobiles and other valuable antiques can give you a good chunk of change to get your new hobby started.
Cashing in Gold and Precious Metals or Stones
The gold market typically fluctuates on a daily basis. But the good news is—gold is on the rise in value and if you have some stashed away, now is the time to cash it in. Other precious stones, such as a ruby, emerald, sapphire or diamond, can also seek top dollar on the resale market. If you have a fine piece of jewelry on hand, don’t hesitate to get it appraised. Now is the best time to cash it in and use that money to launch your business.
There are several ways to get the money you need to live comfortably during retirement. Think outside of the box and come up with a solution to your money issue.
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